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AMERICAN • ASSOCIATION • OF • ADVERTISING • AGENCIES 



CONFIDENTIAL 


































































T^esearch 


A Qomparison of ^Methods 
for Obtaining Information to 
‘Plan Advertising Campaigns 


A Report of the 

Agency Service Committee 
of the 

American Association of Advertising Agencies 

Metropolitan Tower, New York 

March, 1921 






Copyright by 

American Association of Advertising Agenci 

1921 

For the exclusive use of its members 
—its use is not permitted to others 





ft* 26 

© Cl A609651 





£ 


Committee on Agency Service 

Mac Martin, Chairman , National Committee 
Mac Martin Advertising Agency, Inc. 

322 Security Building, Minneapolis 

New York New England 

A. W. Diller H. B. Humphrey 

The Blackman Company H. B. Humphrey Company 

116 W. 42nd Street, New York 581 Boylston Street, Boston 

Philadelphia 

J. H. Cross, J. H. Cross Company 
214 So. 12th Street, Philadelphia 

Western 


C. P. Hanly 

Ferry-Hanly Advertising Company 
Kesner Building, Chicago 


Geo. H. Eberhard 
Evans & Barnhill, Inc. 
421-423 First National Bank^Bldg. 
San Francisco 


Southern 


Jefferson Thomas 
Thomas Advertising Service 
220 Graham Building, Jacksonville 






Table of Contents 


DISCUSSION Pa8C 


Thorough research establishes confi¬ 
dence . 7 

There is danger in research for research 

sake. 8 

A Research Department unnecessary . 8 

Spirit of research more important than 

method. 8 

Advertising does not need research any 
more, if as much, as other branches 

of business activity. 9 

The more we study, the more success¬ 
ful will our advertisements be . . 9 

Thorough research is expensive. ... io 

All have given freely. io 


I. SOURCE OF INFORMATION . 14 


1. Interviewing the clients .... 14 

2. Field survey. 14 

3. The library investigation .... 14 

A. Interviewing the client. 14 

B. Field Survey. 14 

1. Producers. 14 

2. Distributors. 15 

3. Consumers. 15 

4. Influencing group. 15 

5. Authorities. 15 

C. The Library Investigation .... 15 

II. INFORMATION DESIRED . . 16 


A. The Necessity for a Plan of Diag¬ 
nosis. 


Page 

B. The Perfect Plan Never Obtainable 16 

C. Eight Typical Plans of Analyses . 16 


1. First Outline. 18 

2. Second Outline. 20 

3. Third Outline. 21 

4. Fourth Outline. 22 

5. Fifth Outline. 23 

6. Sixth Outline. 24 

7. Seventh Outline. 26 

8. Eighth Outline. 32 

D. Comparison of Methods. 34 

III. HOW THE INFORMATION IS 

USED. 35 

A. Rejecting the Account. 35 

B. Presenting the Findings. 36 


IV. METHODS OF CHARGING FOR 

RESEARCH WORK. 39 

V. BOOKS AND ARTICLES IN RE¬ 

LATION TO RESEARCH . . 41 

A. Books in Relation to Research and 

Compiling of Statistics .... 41 

B. Articles in Printers’ Ink in Relation 

to Research Work . 41 

C. Articles in Printers’ Ink in Relation 

to Research and Statistical Bu¬ 
reaus . 42 


[ 5 ] 





































Discussion 

On ‘Research and Research 
Departmen ts 


I N presenting this report at the third 
annual Convention of the Association 
held in Chicago, October 13 to 15, 
1920, Chairman Martin said that in this 
investigation the Agency Service Com¬ 
mittee has for the first time undertaken 
“a comparative study of practices and 
methods which make for good and which 
it may be in the interest of all to stand¬ 
ardize.” 

The first step in agency service is nat¬ 
urally that of collecting information on 


which to plan an advertising campaign. 
This simple operation has been dignified 
by the word “Research” and has been ex¬ 
tended to cover many detailed and intri¬ 
cate activities. It is not the province of 
this committee to suggest methods of pro¬ 
cedure. The committee has, however, 
studied the methods as well as the policies 
of many of the members and submits this 
only as a comparative study. 

A part of the discussion at the Conven¬ 
tion follows: 


Thorough research establishes confidence . 


A MEMBER: “I want to tell you a 
little bit of recent experience of ours to 
indicate the value of thorough research 
before advertising is done. First may I 
say that our agency has been in touch 
with our President, Mr. Smith, on a 
great many subjects but on none more 
helpfully than on this matter of re¬ 
search being thorough or not at all. 

“We were recently awarded a piece 
of business that came through the most 
careful and thorough research that we 
knew how to make. The advertiser 
paid us not only for the investigation 
but a profit over and above our costs. 


When the report was presented and the 
recommendations made, we did not 
know that another member—not a 
member of this Association—which had 
been handling the business for this ad¬ 
vertiser for years, owned stock in the 
advertiser’s company and was a direc¬ 
tor therein. Nevertheless, we were 
awarded the business and it was the 
thoroughness of our research which did 
it. I believe that agencies should have 
a constantly increasing knowledge of 
the field, competitively and every other 
way, before entering upon any adver¬ 
tising plans.” 


[ 7 ] 




Research 


There is danger in research for research sake 


A MEMBER: “I want to sound a 
note of warning on the danger of re¬ 
search leading an agency into fields 
other than advertising. While we 
charge for all of the research work we 
do and have at the present time ten 
special contracts for research service, 
seven of them at $100 a month and 
three at $300 a month, I am willing to 
say right here that I do not want any 
more of it in my shop. After having 
carried research work to what I think 
is an extreme, I want to say that the 


weakness of it is that it leads the agent 
into a lot of work and thought and rela¬ 
tions with his customer that are far 
afield from advertising. Our Research 
Department has not been a loss finan¬ 
cially but our business is that of an ad¬ 
vertising agent and we find a danger in 
research getting us to thinking about 
things which do not lead to advertising. 
The only kind of research which an ad¬ 
vertising agency should be interested in 
is that which secures the information on 
which to plan advertising campaigns.” 


A Research Department unnecessary 


A MEMBER: “I think there are two 
pitfalls in relation to the subject of re¬ 
search that we all must be careful to 
avoid. The first is the name itself. If 
we are not very careful the word “Re¬ 
search” will take on a comic significance 
like ‘Conference’ and similar words. 

“The second is that we must get 
away from the idea that a separate de¬ 
partment is necessary in order to do re¬ 
search work. We all subscribe to the 
fact that any decent agency has always 


done some research work. Research is 
nothing more than investigation no 
matter how much machinery it may be 
performed with. We will all grant that 
a department will help but it is not es¬ 
sential. The size of the agency will 
determine whether or not a separate 
Research Department is necessary. To 
think of research only as something 
highly departmentalized is not only un¬ 
true but works an unfair handicap on 
the smaller agent.” 


Spirit of research more important than method 


THE CHAIRMAN: “You will find 
Mr. Martin’s report says something 
about methods; but the Executive 
Board has construed that the most im¬ 
portant thing at the present time is the 
spirit of research rather than the meth¬ 
od of research. We have felt that the 
danger in talking method lies in the 
fact that some might start at the point 


where they should finish. An adver¬ 
tising agency that undertakes research 
work should creep before it walks and 
walk before it runs. 

“There are probably not more than 
two or three advertising agents in this 
Association that for more than ten 
years have never made a plan for any 
client without first making an investi- 


[ 8 ] 




Research 


gation to determine what the plan 
should be. Those agencies that have 
had more than ten years’ experience 
recognize very clearly that their first 
efforts, while ahead of what was being 
done by the majority of advertising 
agencies, were very insignificant in 
comparison to what they are doing to¬ 
day. And yet any advertising agency 
that should attempt to start a full 
fledged system and method comparable 
to these of years of experience would 
probably go bankrupt. The danger of 


research work as a part of advertising 
agency service lies in the fact that it 
costs money perhaps beyond the ability 
of the advertising agency to get ade¬ 
quate returns from the client. I know 
what the member who spoke a moment 
ago has in mind when he says he doesn’t 
want any more research contracts. He 
does not mean that he doesn’t want to 
make research for advertising clients; 
he means that he does not want to make 
researches for research clients.” 


Advertising does not need research any more , if as much as 
other branches of business activity 


“This matter of research is not only 
new in advertising agency work, it is 
also new in business. Business men 
have spent millions upon millions of 
dollars year after year on no better basis 
than a hunch or a guess. 

“I do not mean simply in advertis¬ 
ing, because that is the safest place to 
spend money on a hunch or a guess. I 
mean in the erection of a building, in 
the design or character of a product, in 
the establishing of sales organizations 
and goodness only knows what,—the 
business man of the present goes ahead 
and spends his money on nothing more 
to guide him than a hunch or a guess. 


While the advertising agent has been 
the first of the business counsellors to 
refuse to make a plan until supported 
by facts, I honestly believe that the 
only place in the whole ramification 
of business in which the least money 
has been wasted by depending on 
hunches and guesses is in advertising. 
There is something about advertising, 
whether the plans be based on the most 
thorough research or on no research at 
all, that does a tremendous job beyond 
the expectations of those who made the 
plan and handled the execution. Even 
poor advertising properly placed does a 
good job.” 


The more we study , the more successful will our advertisements be 


“Nevertheless, we cannot know too 
much about the industry or the client’s 
business when we are preparing plans 
for his advertising. Efficiency in the 
expenditure of advertising money is 
frequently in direct proportion to the 


knowledge which the advertising agent 
has about the business to be advertised. 

“Research is new in business. It is 
new also in advertising and like every¬ 
thing else that is new, it becomes per¬ 
fect through evolution. It was quite 




Research 


proper that the first attempt at re¬ 
search by advertising agencies should 
have been comparatively limited in its 


scope and method. It is logical that 
through years of experience there should 
be a gradual development/’ 


Thorough research is expensive 


“I am frank to confess that in our 
agency we have almost literally poured 
money into our research work. We 
have done this with the idea that any¬ 
thing or everything we could do in the 
development of this phase of our busi¬ 
ness was worth doing; worth doing not 
only for our own good but also for the 
good of the agency business as a whole. 
We realized that, as must be true in the 
propagation of any new thing, we 
would overdevelop. And we have. We 
are now in the process of eliminating 
and cutting down to the point where 
we have something which is eminently 
practical, stable and sufficient. Suf¬ 
ficient to what ? To the entire needs of 
business? No. Sufficient to cover the 
relation of advertising to business. Like 
the member who has just spoken, no 
one can come along and hire us simply 


to do a research job for him. He can 
hire us to act as his advertising agent 
and then as an essential part of our ad¬ 
vertising service to him we first of all 
make a study of all departments of his 
business and all conditions surrounding 
the marketing of his product. Then we 
make our advertising plans or give our 
advertising advice on the basis of 
knowledge thus obtained. 

“Research Departments are fine 
places to spend money without getting 
a proper return, either through income 
or increased service to advertising, and 
I, for one, do not wish to see this Asso¬ 
ciation in any way responsible for per¬ 
suading our membership to adopt meth¬ 
ods of organization effort in service to 
clients that entail so much risk of finan¬ 
cial waste.” 


All have given freely 


All who have had any experience in es¬ 
tablishing and using Research Depart¬ 
ments have been ready and willing to give 
Mr. Martin every facility we have and 
every bit of knowledge we have regarding 
the part research plays in our organiza¬ 
tions. He says he has talked with some¬ 
thing like forty agencies on this subject 
and that nineteen of those agencies gave 
him forms, data, etc., that three years 
ago, before the formation of this Associa¬ 
tion would have been considered confiden¬ 


tial information of such' a character that 
none of us would have given it to anybody 
outside of our own organizations. Mr. 
Martin came to our organization and 
spent an entire day studying our methods. 
We gave him an outline which it has 
taken us ten years to develop. It is the 
one thing which we have always consid¬ 
ered the most sacred piece of personal 
property which the agency possessed. It 
is the one thing which, when a man left 
our organization, we asked him to leave 


[io] 




Research 


with us. We have gladly turned this over 
to this committee. We are still ready to 
show others what we are doing in our Re¬ 
search Department if we are satisfied 
their attitude toward the work is right. 
To men who have asked to study our re¬ 
search methods we have said, “If your 
spirit of research is right, you can come 
and spend as long a time as you wish.” 
To one agency we said, “If you want to 
loan a man to us for a few months we will 
put him in our Research Department to 
learn what we are doing.” But we will 
accord this privilege only to those whose 
spirit and attitude toward research work 
appears to us to be right; only to those 
whose common sense and judgment are 
such that they won’t go crazy with the re- 


Executive Headquarters, 

American Association of Advertising 

Metropolitan Tower, New York 


search idea, or try to run before they have 
learned to creep. 

Every agency should have the desire to 
formulate a system by which it will be in a 
position to obtain more and more infor¬ 
mation on which to plan advertising cam¬ 
paigns more and more intelligently. But 
methods should be developed slowly from 
small beginnings, deep rooted, however, 
in a real honest spirit and desire to know 
all there is to know about the business 
that is to be advertised. 

You will get in Mr. Martin’s report a 
sufficient sketch of what research is to 
catch this spirit if you haven’t it already, 
and to enable you to use your own brains 
to work out a system and method to suit 
your own needs. 

Attest 

James O’Shaughnessy, 

Executive Secretary 

Agencies 


[ii] 













































































Comparison of *J)(Pethods for Obtaining In - 
formation to I J lan ^Advertisitig Campaigns 


D URING the past year the Com¬ 
mittee on Agency Service has 
undertaken a comparative study 
of the practices and methods which some 
of our members employ in furnishing 
service to their clients. The Chairman 
has called personally on more than forty 
of the members and has had long conver¬ 
sations with them in relation to their poli¬ 
cies and practices. Wherever he has gone 
he has been most cordially received. He has 
been given access to files, has talked per¬ 
sonally with the heads of different depart¬ 
ments, has seen work in process, has read 
reports of investigations and recommen¬ 
dations and has been afforded the most 
hearty cooperation. 

No one can make such an investigation 
without being struck with the painstak¬ 
ing care and honest desire on the part of 
all members to render a resultful service. 
No one can find a better way to improve 
the service of his agency than through 
such cooperation with his competitors. 
Thru the leadership of the American As¬ 
sociation of Advertising Agencies, we are 
entering a new era of cooperative study 
and helpfulness. While methods may 
differ, the spirit of agency service seems 
to permeate every organization we have 
visited. 

In this Report we are pleased to present 
our findings in relation to the methods 
used in obtaining information on which to 
plan advertising campaigns. Of late this 
has been given the title, “Research” or 
“Investigation” and some members have 
established special departments known as 
Research Departments for the conduct 


of this branch of their business. While, 
from the very beginning, agencies have 
made it a practice to obtain much 
information before planning advertise¬ 
ments, the establishment of a special de¬ 
partment is a new feature and the work 
of these departments has not as yet been 
standardized except in a few instances. 
Very few of these departments are more 
than two years old. They are developing 
rapidly and have already accomplished 
very remarkable results. The research 
men we talked to were for the most part 
college graduates who had specialized in 
economics or experimental psychology and 
who took their work seriously as a service. 

While the object in adding any new fea¬ 
ture to agency service is to develop more 
business and to influence sales and while, 
in some cases the Research Department 
seems too closely associated with the 
Sales Department, most Research Depart¬ 
ments are conscientiously trying to con¬ 
sider their work as separate and distinct 
a part of the service as that of the Copy 
or Art Departments. 

There has always been a tendency in 
any research work to obtain information 
for the purpose of proving a point rather 
than for the purpose of weighing cold 
facts. In the main, however, we find the 
Research Departments of our members 
are given a great deal of latitude with 
the fundamental instruction to obtain 
the facts no matter what they may be. 

It is with the hope that this comparison 
of methods may help our members to 
improve their service that this Report is 
presented. 




Research 


I. SOURCE OF INFORMATION 


The first question we asked each member 
was, “Where do you obtain your informa¬ 
tion?” In general there seemed to be three 
sources: 

1. The library investigation. 

2. Interviewing the clients. 

3. The field investigation. 

Some change the order by first calling on 
the client and gathering together all the in¬ 
formation he is in a position to furnish and 
then conducting field investigations before 
attempting to supplement this information 
with the records on file in the agency. 

A. Interviewing the Client. 

While some agents are content with gath¬ 
ering together samples of the product, pre¬ 
vious advertisements and follow-up litera¬ 
ture, we find that most of our members have 
developed some well formulated plan of pro¬ 
cedure in obtaining information from the 
client after the contract has been signed. 
This may be gathered by the service man¬ 
ager, the copy-writer or the Research De¬ 
partment. Most members are finding that 
all the information desired cannot be ob¬ 
tained from one man only. Each department 
of the business has its own story and its own 
attitude towards the problems involved. 
Some members make it a point to ask a 
different set of questions of each of the fol¬ 
lowing: 

1. President or key man. 

2. Sales manager. 

3. Advertising manager. 

4. Superintendent of manufacture. 

5. Treasurer or any other financial man 
having a voice in determining policies. 
In some cases this is found to be a banker 
or some one not actually connected with 
the organization. 


6. The head of the purchasing department. 

7. Branch managers. 

8. The salesmen themselves. 

Even if some of the same questions are asked 
of each of these groups, an agency is given 
an opportunity to discuss limitations and 
possibilities of the business better than it 
can hope to obtain from one source only. 
The report of such interviews is usually pre¬ 
pared in written form that it may be avail¬ 
able for the different departments of the 
agency in planning a campaign. 

B. Field Survey. 

There are two general classes of field sur¬ 
veys,—those conducted by mail and those 
conducted thru field investigators. In gen¬ 
eral there are five sources of information for 
field surveys. The nature of the business 
under investigation will determine whether 
it is necessary to reach all classes. As a 
guide to memory and in an effort to avoid 
overlooking any sources for field investiga¬ 
tion, one agency has divided these five as 
follows: 

1 . Producers. 

Producers are divided into two classes: 

a. Those who furnish parts as in the case of an as¬ 
sembled product and those who furnish raw mate¬ 
rial. 

b. Competitors. Information is obtained from com¬ 
petitors in three ways. First, by gathering together 
all printed articles in relation to their business 
which competitors may have contributed to trade 
or other publications. Second , by representing to 
be a bonafide purchaser or prospective distributor, 
either in correspondence or in person. Third , by 
calling on the competitor, clearly stating the nature 
of the business and endeavoring to obtain informa¬ 
tion. 


(Hi 





Research 


2 . Distributors. 

A separate set of questions is usually asked 
of each class of distributors such as: 

a. Importers and brokers. 

b. Jobbers. 

c. Dealers. 

3 . Consumers. 

4 . Influencing Group. 

The groups which may influence purchases 
vary with different businesses. In the case 
of foods and drugs they are doctors and den¬ 
tists. In the case of building materials 
they are architects and contractors. In 
other cases they are schools and colleges, 
bankers, lawyers and ministers. 

5 . Authorities. 

These divide themselves into many classes 
such as: 

a. Government and State Departments. 

b. Trade publications and organizations. 

c. Private or cooperative enterprises. There are a 
large number of these. Among them are: 

(1) Commercial agencies. 

(2) Research bureaus. 

(3) Chemists. 

(4) Authors of books. 

C. The Library Investigation. 

Some members prefer to study all of their 
own records in relation to a proposition be¬ 
fore talking to a client or making a field 
survey. They feel that in this way they are 
in a position to ask questions more intelli¬ 
gently, to verify the information which they 
already have and to save a great deal of 
time in gathering information which is al¬ 
ready available. Others prefer to go to the 
client or to the field in an unbiased attitude 


declaring that they know nothing about the 
business and are therefore not attempting to 
advance any preconceived notions. If the 
latter method is followed, the third step is to 
gather together all material obtained in the 
investigation of the client’s business and in 
the field survey and to supplement it with 
the experience of the agency and its records 
of distribution, advertising media and adver¬ 
tising appeal. 

We find members making many tests of 
the advantages or disadvantages of a product 
thru its use in their own organizations. If 
a food product is to be advertised, it is quite 
customary to distribute samples among mem¬ 
bers of the organization and to question them 
about it in an effort to obtain selling points. 
The general sources of information in the 
library of an agency are too well known to 
receive special attention here. Information 
on markets is, for the most part, found in the 
reports of the United States Census and other 
government and state departments. In¬ 
formation on media and the extent of com¬ 
petitors’ advertising is obtained from the 
Audit Bureau of Circulations, Century Build¬ 
ing, Chicago, Illinois, the standard rate 
cards, the Advertising Record Company 
(formerly the Washington Press), 176 West 
Washington Street, Chicago, and the Pub¬ 
lishers’ Information Bureau, St. Denis Bldg., 
cor. nth St. and Broadway, New York City. 
These two last named organizations furnish 
a standard checking service showing the 
lineage used by advertisers in the leading 
publications. Both of these services can be 
obtained on a yearly basis or thru the pur¬ 
chase of individual reports, rates for which 
are quoted on application. 




Research 


II. INFORMATION DESIRED 


To ask an advertising agent, “What is the 
information you need in order to plan an ad¬ 
vertising campaign intelligently?” is much 
like asking a doctor, “What should you 
know about me in order to diagnose my 
case?” The only safe answer is—“Every¬ 
thing.” We make a client stick out his 
tongue, tell his age, record his temperature 
and do a hundred and one other things which 
may be necessary both for the effect on the 
client and for the sake of information de¬ 
sired. It doesn’t make much difference 
whether we ask his age or start to feel his 
pulse first. The main thing is to get the in¬ 
formation which is absolutely necessary be¬ 
fore the patient is completely worn out. 
There are so many questions of vital impor¬ 
tance that it is no wonder certain of us over¬ 
look one or two now and then, thus giving 
our competitors an opportunity to show our 
clients the woeful lack of efficiency we have 
displayed. 

A. The Necessity for a Plan of Diagnosis. 

To develop any one set of questions which 
is applicable to any kind of business is al¬ 
most a superhuman task; yet to miss a vital 
question is the greatest danger which any 
professional service must constantly face. 
The country doctor of a few years ago felt 
that he had covered the field when he made 
a study of the condition of the alimentary 
canal, the lungs and the heart. Now the 
doctors are finding that for years many un- 
discoverable complaints have been attribu¬ 
table to the teeth and the tonsils. 

So, as each service progresses, we find new 
things in the same old body which should 
have been investigated. There seems to be 
a crying need for some general form of diag¬ 
nosis and while the study of production has 


been well handled by such men as Frederick 
W. Taylor, Clarence Bertrand Thompson 
and H. L. Gantt, the study of distribution is 
being left to the advertising agencies. 

We find that many of our members have 
already attempted some such general out¬ 
lines for the study of the business of a new 
client in an endeavor to cover all points. 

B. The Perfect Plan Never Obtainable. 

In the beginning of one such outline we 
find the following: 

“No attempt can be made to apply the form entire to every 
account but the general arrangement of material can be of 
the greatest assistance in guiding the necessary creative 
work along the main lines. And it is merely in the interest 
of clear thinking, not as an accessory and needless formality, 
that this outline has been prepared.” 

In explaining another outline, one of the 
members says: 

“I must say, in turning this questionnaire over to you, 
that it is not intended to be a working tool so much as a 
reference list, including all the subjects that ought to be 
covered in studying any new business. The list is ideal, or 
tries to be ideal, in its completeness and cannot, of course, 
be used on every account because it will be much too 
clumsy and ponderous, but it can serve as a reservoir, so to 
say, from which subjects will be noted that ought to be 
taken up in discussions with an advertiser, and what I am 
hoping to get is a consideration of these subjects in their 
properly related order and importance by the use of such a 
list as this, as well as assurance that no important matter 
will be overlooked in the agency’s procedure.” 

While many members say that businesses 
vary so greatly that any standard guide is 
useless, we find others who have used such 
plans for a number of years, constantly im¬ 
proving and changing their outlines as condi- 
tionsvary,so that today while they still do not 
feel that their outline covers all points, they 
find thru having adopted something of this 
kind that they are in a position to give much 
more complete service than they would have 
been without it. 

C. Eight Typical Plans of Analyses. 

In our wanderings we have collected nine- 




Research 


teen such plans of analyses. Some are very 
long and with all of their subdivisions con¬ 
sume a hundred or more pages. For the pur¬ 
pose of comparison, it has been necessary for 
us to leave out all subdivisions beyond the 
fourth. While this may not show the com¬ 
pleteness of any one, it gives the general 
framework and affords a better opportunity 
for comparison than so long an outline would 
present. Some of these outlines are accom¬ 
panied by notations as to the probable 
sources for obtaining such information. Oth¬ 
ers are accompanied by suggestions for maps 
and graphs as well as comparisons of the dif¬ 
ferent items. Some also contain reminders 
for enlargement which cannot strictly be 
called information. Such questions have been 
left in the outlines where they come within 
the fourth subdivision. 

The head of one of the best equipped Re¬ 
search Departments we have ever visited, 
when asked the question, “What do you try 
to find out?” replied, “I have put it in one 
sentence which covers fifteen main questions. 
No matter how many other questions I may 
ask I try at least to cover these and despite 
the simplicity of the question, I find that if 
I do not constantly refer to them I am liable 
to forget one. I call them my five W’s. 

“The question is — ‘How, why , when , 
where and by whom is this product or service 
produced, distributed and consumedV This 
member also has a long list of questions in 
addition to this one but says that whenever 
he makes up a questionnaire he finds his five 
W’s of the most help. 

The eight outlines chosen for further study 
are typical of all we have received. They 
are not chosen for their similarity or for their 
differences. All but one have been prepared 
by members of the Agents’ Association and 
we understand that all are now being used 
by members to a greater or less degree, al¬ 
though constant changes are being made and 


we have no assurance as this Report goes to 
press that this is the final development of 
any particular outline presented. 

Adhering to the policy of this Committee 
in such comparisons, we have not given the 
names of the authors of any of these outlines, 
each author having consented to submit his 
work anonymously for the general good of 
the business. Four of these outlines were 
obtained from members with billings of the 
highest classification. The other three are 
used by agencies with an annual billing of 
less than one million dollars. The Committee 
does not attempt to present any one or any 
number of these outlines as models and we 
are sure that the authors themselves do not 
so regard them. They are presented purely 
for the purpose of comparison with the hope 
that each member will carry on the study, 
improving his own service in so far as these 
may suggest improvement or build up an 
outline, if he thinks necessary, from this 
study supplemented by his own experience. 

We do not presume to state how this in¬ 
formation will help the agency in forming 
judgments. That is outside of the question and 
is the real secret of the ability of the agent. 

We feel confident in presenting these out¬ 
lines that no member will so mistake our 
purpose as to show such an outline to a 
client and claim superiority for his service 
on the ground that he asks more questions 
and therefore is more thorough in the service 
rendered. We also have too much respect 
for the judgment of members to imagine 
anyone ridiculing such effort by claiming 
that many of these questions would in all 
cases be immaterial. 

Such a study can never be considered as 
complete or final. The Committee will wel¬ 
come suggestions as to the most practical 
method of extending this study as the adver¬ 
tising agency business progresses and meth¬ 
ods become more standardized. 




First Outline 


I. BUSINESS 

A. Personnel. 

B. When founded. 

C. By whom founded. 

D. Present capitalization. 

E. Volume of business each year for past 
five years. 

F. Articles produced. 

G. Location of plants. 

H. What type of labor is employed in manu¬ 
facturing? 

II. PRODUCT 

A. What raw materials are used? 

B. Where are the raw materials obtained? 

C. Is the supply of raw materials limited to 
such an extent as to seriously affect your 
production? 

D. Is the price of raw materials limited to 
such an extent as to seriously affect your 
production? 

E. Is the quality of the product constant or 
does it depend upon conditions some¬ 
times beyond your control? 

F. What inspection and test methods are 
employed ? 

G. Would the overhead cost be materially 
reduced if production were increased ? 

H. What is the patent status of the product? 

I. What is the trade-mark and priority 
status ? 

J. How long has the product been on the 
market? 

K. Weak points of product, if any. 

III. MARKET 

A. Estimated per capita consumption of 
product based on 100,000,000 popula¬ 
tion. 


Estimated per capita consumption of all 
like products. 

C. Is market affected in any way by na¬ 
tional or local laws? 

D. Is market limited in any way by distri¬ 
bution difficulties? If so, please outline 
in detail. 

E. Is sale seasonable? If so, what seasons 
are best? 

4 

F. Is sale increasing or decreasing? 

G. Is any definite influence operating against 
sale? If so, what? 

IV. DISTRIBUTION 

A. What are your present channels of dis¬ 
tribution? 

B. Names and location of all brokers. 

C. Approximate number of jobbers. 

D. Complete list of branch offices. 

E. Complete list and location of warehouse 
stocks. 

F. Approximate number of retail dealers 
carrying your product in each state. 

V. MERCHANDISING 

A. Brokers’ profit. 

B. Jobbers’ profit. 

C. Retailers’ profit. 

D. How do these profits compare with other 
similar products? 

E. Range of jobbers’ prices in different sec¬ 
tions of the country. 

F. Range of retailers’ prices in different sec¬ 
tions. 

G. Range of consumer prices in different 
sections. 

H. How is product packed? 

I. Number of different size packages. 


FIRST OUTLINE 

B. 




First Outline 


J. How do the profits compare with other 
similar products? 

K. Jobbers’ attitude. 

L. Retailers’ attitude. 

M. Rate of retail turnover. 

VI. SALES 

A. Total number of salesmen. 

B. How many cover retail trade ? 

C. How many cover wholesale trade? 

D. How many cover manufacturers ? 

E. Do your retail salesmen work under in¬ 
structions from brokers or directly under 
your supervision? 

F. How often do you give brokers retail 
help ? 

G. What is your basis for arriving at the 
amount of work to be done in different 
territories ? 

H. Who routes your salesmen? 

I . Have you definite standards of measuring 
the value of salesmen? 

J. Do you hold sales conventions? 

K. How often do salesmen cover the retail 
trade? 

L. Do you ever conduct contests among job¬ 
bers salesmen? 

M. Do you ever conduct retail contests? 

N. Have you any exclusive jobbers? 

O. Do you sell any retailers direct? 

P. Strongest sales arguments. 

Q. Salesmen’s attitude towards advertising. 

R. Credit policy. 

S. Record of sales costs during each of past 
five years. 


VII. COMPETITION 

A. Names and location of principal com¬ 
petitors. 

B. Approximate volume of business done by 
each one. 

C. Relative good-will standing of each. 

D. Strongest sales arguments of each. 

E. Weakest points of each. 

F. Methods of distribution (if different from 
yours). 

G. Do any of your competitors have natural 
advantages over you, such as central lo¬ 
cation, better shipping facilities, prox¬ 
imity to raw materials, etc.? 

VIII. ADVERTISING 

A. What considerations led up to the selec¬ 
tion of the name of the product? 

B. The trade-mark. 

C. The label design. 

D. What have you aimed to accomplish in 
the advertising? 

E. What has been the appropriation for ad¬ 
vertising during each of the past five 
years ? 

F. How is the appropriation determined? 

G. What advertising mediums have been 
used during each of the past five years? 
(Please give complete list of magazines, 
newspapers, trade papers, etc.). 

H. What direct advertising material has 
been employed regularly? 

I. What advertising material do you furnish 
to your dealers? 

J. How do you distribute advertising mate¬ 
rial to dealers? 

K. What advertising material have you on 
hand at present ? 




Second Outline 


SECOND 

I. PRODUCT 

A. What are the trade-names and trade¬ 
marks? 

B. What are the main divisions of products? 

C. What are their relative volumes of sales? 

D. Are products patented and how do they 
compare in value with other brands? 

E. What technical or other advantages have 
they? 

F. From a manufacturing standpoint, which 
would be the most profitable product to 
concentrate upon? 

II. CONSUMPTION 

A. What is the total consumption of each 
division of product? 

1. In the United States. 

2. In each state. 

3. In cities and towns of 10,000 or over. 

4. In towns of 10,000 and under. 

B. What is the consumption per capita? 

C. What is the total possible consumption? 

D. What is the average purchase by an indi¬ 
vidual consumer? 

E. How many consumer purchases in a year? 

III. COMPETITION 

A. How many competitors are there, and 
what percentage of the total business has 
each competitor? 

B. How many advertised brands are there? 

1. What are their comparative prices. 

2. The extent and type of their advertising. 

3. Have they tried localized advertising 
plans. 

C. What percentage of gross sales are com¬ 
petitors spending for their advertising? 

D. What do their sales organizations consist 
of? 


OUTLINE 

E. How many competitors have national 
and how many have restricted distribu¬ 
tion ? 

IV. DISTRIBUTION 

A. What is your distribution? 

1. How many branches—where? 

2. What does sales organization consist of— 
salaried men—commission men. 

B. How many possible dealer-customers 
have you (classified) ? 

C. To what extent do dealers influence con¬ 
sumer purchases? 

D. How many different brands do dealers 
carry? 

E. Do any jobbers handle the goods? 

F. Are wholesale and retail prices fluctuating 
or fixed ? 

G. Are there any peaks and low spots in 
selling seasons? When? 

V. CONSUMER 

A. Which division of product would be easi¬ 
est to sell to consumer? 

B. Which division is purchased most by 
brand ? 

C. What is consumer’s present attitude 
toward product? 

D. Is it a necessity or luxury and how long 
will it last? 

E. Does its purchase involve a change in 
buying habit on the part of the consumer 
or the expenditure of money which would 
not otherwise be spent? 

F. Which is main appeal? 

1. Value. 

2. Utility. 

3. Pride. 

4. Appearance. 


[ 20 ] 




Third Outline 


THIRD OUTLINE 


I. INVESTIGATION OF MARKETING 
POSSIBILITIES OR DISTRIBUTION 

II. INVESTIGATION OF 
TRADE ATTITUDE 

III. LINING-UP OF OBSTACLES AND 
PLANS FOR THEIR ELIMINATION 

IV. THE NAME 

A. Description of the article. 

B. Easily pronounced. 

C. Easily remembered. 

D. Capable of being protected. 

\ 

V. THE PACKAGE 

A. Its design, shape and general appearance 
with due regard to its display effect in 
stores and its appeal to purchasers. 

B. Its practicability and cost. 

C. Its advertising value. 

VI. THE ADVERTISING PLAN 

A. As it affects the traveling man. 

B. As it affects the jobber. 

C. As it affects the dealer. 


D. As it affects the store salesman. 

E. As it affects the consumer. 

F. As it affects competing goods. 

VII. THE GENERAL SALES PLAN 

A. Fitting it to conditions. 

B. Tying it up with the advertising. 

VIII. THE MEDIA 

A. Their selection. 

B. Their cost. 

C. The spaces to use. 

IX. THE APPROPRIATION 

A. Its size. 

B. Its apportionment. 

X. THE COPY 

A. The argument: The salesmanship in type. 

B. The illustrations, designs and typog¬ 
raphy: compelling attention. 

XI. THE PROVING UP 

A. Seeing that the many parts dovetail and 
work together harmoniously and there¬ 
fore effectively. 


[ 21 ] 




Fourth Outline 


FOURTH OUTLINE 


I. PRODUCT 

A. Demand. 

1. Developed or undeveloped. 

2. Forced or natural. 

3. Permanent or seasonable. 

B. Serviceability. 

1. Necessity, luxury or convenience. 

2. Durability or economy. 

C. Quality. 

1. Raw materials. 

2. Design. 

3. Workmanship. 

4. Appearance. 

5. Finish. 

D. Price. 

1. Jobber. 

2. Broker. 

3. Retailer. 

4. Consumer. 

E. Profit. 

1. Manufacturer. 

2. Jobber. 

3. Broker. 

4. Retailer. 

F. Competition. 

1. Old or young men. 

2. Aggressive. 

3. Long established. 

4. Newly established. 

5. Financial strength. 

6. Sales plan. 

7. Advertising campaign. 

8. Policy toward customers. 

9. Sales manager. 

10. Sales force. 

11. Credit department’s attitude toward cus¬ 

tomers. 

II. FIELD 

A. Location. 

1. City. 

2. Town. 

3. Country. 

4. Local. 

5. Territorial. 

6. National. 


B. Consumers. 

1. Male. 

2. Female. 

C. Climate. 

1. Length of seasons. 

2. Temperature. 

3. Rainfall. 

4. Vegetation. 

D. Financial condition. 

1. Crops. 

2. Mining. 

3. Manufacturing. 

4. Transportation lines. 

5. Speculation. 

6. Professional services rendered. 

E. Transportation. 

1. Length of haul. 

2. Rates. 

3. Method of packing. 

F. Competition. 

1. Aggressiveness. 

2. Long established. 

3. Limited means. 

4. Sales. 

5. Policy toward customers. 

6. Credit department’s attitude toward cus 
tomers. 

7. Advertising campaign. 

III. DISTRIBUTION 

A. Direct to consumer by mail order. 

1. National. 

2. Local. 

3. Territorial. 

B. From factory to retailer to consumer. 

1. National. 

a. Branch offices. c. Auxiliary advertising. 

b. National advertising, d. Salesmen. 

2. Local. 

3. Territorial. 

a. Dealer. b. Consumer. 

C. Through regular channels jobber to re¬ 
tailer to consumer. 

1. National. 

2. Local. 

3. Territorial. 

[22 ] 




Fifth Outline 


+ 


FIFTH OUTLINE 


I. PREPARATION 

A. Investigation. 

1. Product. 

a. Merit. 

b. Consumer acceptance. 

c. Trade acceptance. 

2. Manufacturing problem. 

a. Manufacturing cost. 

b. Material supply. 

c. Labor supply. 

d. Production possibilities. 

3. Competition. 

4. Selling problem. 

a. Past sales record. 

b. Past sales method. 

c. Sales cost. 

d. Sales management. 

e. Sales territory. 

f. Shipping problems. 

5. Market. 

a. Old fields. 

b. New fields. 

B. Analysis. 

1. Significance of investigation disclosures. 

a. Product. 

b. Price. 

c. Name. 

d. Package. 

e. Manufacturing methods. 

f. Selling methods. 

g. Market. 

h. Appeal. 

C. Purpose. 

1. Building trade. 

2. Building good-will. 

D. Plan. 

1. Complete. 

2. Appropriate. 

3. Timely. 

4. Economical. 

II. PRESENTATION 
A. To consumer. 

1. Direct advertising. 

a. Catalogs. 

b. Booklets. 

c. Circulars. 

d. Letters. 


e. Demonstrations. 

f. House organs. 

g. Samples. 

h. Specialties. 

2. Publication advertising. 

a. Correct copy. 

b. Correct media. 

c. Correct size of copy. 

d. Tests and records. 

e. Correct number and frequency of insertions. 

3. Car advertising. 

4. Outdoor advertising. 

5. Motion pictures. 

B. To trade. 

1. Publication advertising. 

a. Correct copy. 

b. Correct media. 

c. Correct size copy. 

d. Tests and records. 

e. Correct number and frequency of insertions. 

2. Direct advertising. 

a. Catalogs. 

b. Booklets. 

c. Circulars. 

d. Letters. 

e. Demonstrations. 

f. House organs. 

g. Samples. 

h. Specialties. 

3. Selling helps. 

a. Catalogs. 

b. Booklets. 

c. Circulars. 

d. Letters. 

e. Specialties. 

f. Display matter. 

g. Local advertising. 

h. Samples. 

i. Store demonstrations. 

C. To salesmen. 

1. Advertiser’s salesmen. 

a. Portfolio of all consumer advertising efforts. 

b. Portfolio of all trade helps. 

c. Complete and frequent instructions. 

2. Distributor’s and jobber’s salesmen. 

a. Condensed portfolio of all consumer advertising 
efforts and all dealer helps. 

b. Complete and frequent instructions. 

3. Dealer’s salesmen. 

a. Product or package to carry selling points where 
possible. 

b. Frequent sales instruction bulletins. 


[23] 




Sixth Outline 


SIXTH OUTLINE 


I. STUDY OF PRODUCT AND 
INDUSTRY 

A. To analyze the given product and its 
competition. 

1. Technical information. 

a. Design (price and uses). 

b. Material 

c. Construction—peculiar manufacturing methods. 

d. Style (uses). 

e. Record of use and tests. 

f. Comparison with ideal product. 

g. Contrast with competition. 

h. Analysis of unit cost. 

i. Technical history of development work. 

2. Practical information. 

a. Study of uses—to be subdivided minutely in each 
specific case. 

b. Record of uses by public. 

c. Prices (geographical variations). 

d. Basis of individuality. 

B. To analyze the consumer market of the 
given product and its competition. 

1. Extent of market as a whole. 

a. Present. 

b. Possible market. 

2. Extent of business of each competitor. 

a. Present condition. 

b. Possible condition. 

3. Distribution of market. 

a. Of market as a whole. 

b. Of business of each competitor. 

4. Study of customers. 

a. Prevailing conditions in public mind. 

b. Habit or custom of use. 

c. Buying habit. 

d. Intimate study of consumer. 

e. External resistance or assistance. 

C. To analyze trade conditions as regards 
product and competition. 

Selling agent. 

Branches. 

Brokers. 

Distributors. 

Jobbers. 

Retailers. 


1. Distribution. 

a. By class of trade. 

b. By states. 

c. By sizes of towns. 

d. By rating and strength. 

2. Trade habits or customs. 

a. Discounts. 

b. Comparison of discounts with those of same and 
similar classes of products. 

c. Relations of class of product to business as a whole. 

d. Season for buying. 

e. Season for selling. 

f. Size of average order. 

g. Frequency of orders. 

h. Average stock—possible absorption. 

i. Use of catalog. 

j. Transportation. 

k. Unusual influence. 

l. Intimate knowledge of trade. 

II. STUDY OF CLIENT’S ORGANIZA¬ 
TION AND POLICY 

A. To review general management of client 
and firm policy. 

1. Industrial classification. 

2. Position in the industry. 

3. Complete general history of the firm. 

a. List of and changes in products manufactured. 

b. Importance of each product. 

c. Changes in general management. 

d. Rate of growth. 

e. Economic soundness. 

f. Analysis of general organization, scientific, depart¬ 
mental or arbitrary management. 

g. Banking connections. 

h. Relations with and attitude toward competitors. 

i. Analysis of special conditions surrounding business. 

B. To review production strength of client 
and competition. 

1. Factory facilities. 

a. Plant. 

b. Equipment. 

2. Organization. 

a. Executive. 

b. Labor. 

3. Raw material market. 


[24] 




Sixth Outline 




4. Output. 

a. Present. 

b. Possible. 

c. Time required for expansion. 

5. History of production. 

6. Description of research department. 

C. To analyze the general sales plans of 
client and competition. 

1. General policy, including: 

a. Territory covered. 

b. Trade covered. 

2. History of sales organization. 

3. Organization proper. 

a. Executives. 

b. Force of men. 

c. Plan of action. 

d. Method of instruction. 

4. Analysis of general sales budget—figured 
back from consumer price both on unit 
basis and in totals. 

a. Dealer. 

b. Jobber. 

c. Other middlemen, if any. 

d. Sales organization. 

e. Advertising. 

f. General sales expense. 

g. Manufacturing expense. 

h. Overhead, 
i Profits. 

D. To analyze past advertising of client and 
competition. 

The analysis of the past advertising and 
competition should cover the points listed 
in connection with the Preparation of Com¬ 
plete advertising Plan. The same points 
should be considered with reference to 
what has been done in the past as in regard 
to what will be done in the future. 

III. TO PREPARE COMPLETE ADVER¬ 
TISING PLAN 

A. Determination of sales budget, direct 
selling appropriation and advertising ap¬ 
propriation. 


B. Copy plan as a whole. 

(To consumer. 

(To trade. 

(To sales organization. 

1. Determination of ultimate purpose of 
entire campaign—to cut into competition 
or make new uses or cut into new and 
rising market. 

2. Principal appeal. 

3. Size space. 

4. Use of color. Analysis of peculiar con¬ 
ditions making color or absence of color 
desirable. 

5. Means of identification. 

6. Means of securing continuity. 

7. Types of appeal or tone—independent of 
facts—to be used in the copy. 

C. Determination of advertising media. 

Distribution of appropriation among 
various types of advertising mediums 
selected for campaign. 

Detailed schedule showing dates, space, 
special issues, position, color, etc., based 
on above distribution of appropriation. 

1. To the consumer direct. 

a. Periodicals. 

b. Display. 

c. Direct mail. 

d. General publicity. 

e. Personal work on consumer. 

2. To the consumer through the dealer. 

3. To the trade. 

4. To sales organization. 

D. Determination of specific copy. 

1. Copy must be considered with reference 
to the space and medium in which it is 
presented. 

a. To consumer direct. 

b. To consumer through the dealer. 

c. To trade. 

d. To sales organization. 

2. Factors in specific copy. 

a. Purpose: check consistency of each piece of copy 
with balance of campaign in the respect. 

b. Units. 

c. Tone. 


[25] 




Seventh Outline 


SEVENTH OUTLINE 


I. DATA ESSENTIAL TO ESTABLISH- B. 
ING WORKING RELATIONS 

A. Name of the company and any associated 
interests. 

B. Address (include branch offices, stores, 
etc.). 

C. Names of officials of the company (Stat¬ 
ing titles in full, noting especial interests 
in the company’s activities such as “Vice- 
President in charge of Sales,” etc.). 

D. Names of men having to do directly with 
the sales and advertising.. 

E. Names of men whose O.K. is necessary 
on: 

1. Matters relating to sales. 

2. Matters relating to advertising. 

3. Matters of technical nature. 

4. Matters of financial nature. 

F. Conferences. 

1. Arranged for with whom. 

2. Best places for. 

3. Best times for. 

G. Instructions as to communication with 
the company. 

H. Instructions as to shipping to the com¬ 
pany. 

I. Traveling. 

J. Especial rulings of the company to be 
observed by our men. 

K. Name of the former advertising agency, 
men in charge. 

L. Preference expressed for any of our men. 

M. Assignments in our organization. 

II. DATA ON THE COMPANY ITSELF 

A. History of the company. 

1. History. 


Industry, the company’s standing in the 
industry and its relation to important 
competitors. 

1. History of the industry. 

2. Rank of the industry as related to the 
country’s leading industries. 

3. Investments in the industry. 

4. Yearly volume of product. 

5. Manufacturers in the industry—here 
and abroad. 

a. Number of manufacturers abroad. 

b. Number of manufacturers in U. S. 

6. Industrial centers in the United States. 

a. Reasons for these cities becoming the centers of 
the industry. 

7. Combinations of manufacturers in the 
industry. 

8. Relative standing of manufacturers in 
the industry. 

9. Leaders in the industry. 

10. Past reputation, 
n. Present reputation. 

a. With the trade. 

b. With the public. 

12. Legal restrictions on the industry. 

13. Economic tendencies at work in the 
industry. 

14. Effects of the war upon the industry as 
to: 

a. Increase in size. 

b. In volume. 

c. In profits. 

d. In costs. 

15. Governmental restrictions on the in¬ 
dustry as to: 

a. Materials. 

b. Labor. 

c. Fuel, power, etc. 

d. Transportation. 

e. Volume of manufacture. 

f. Distribution. 

16. Associations for the promotion of the 
industry. 

C. The company’s scheme of organization. 
1. Organization. 

a. Departmental divisions, organization. 

b. Personnel. 

c. Scope of departmental responsibilities. 

d. Supervision, systems, reports, etc. 


[26] 




Seventh Outline 


2. Principles and policies in general. 

a. The business as a whole. 

b. Employees. 

c. Products. 

d. Consumers, markets, etc. 

3. Financial. 

a. Departmental organization, personnel and res¬ 
ponsibilities. 

b. Records and statistics. 

c. Credits and collections. 

d. Distribution of overhead. 

e. Securities. 

f. Financial associations. 

4. Statistics on the company. 

a. Production. 

b. Financial. 

c. Selling. 

5. Is the company in balance as to: 

a. Production. 

b. Selling. 

c. Administration. 

D. The company’s manufacturing facilities, 
etc. 

1. Number of plants producing the product. 

a. How many plants does the company operate? 

b. If more than one plant, are any of them special¬ 
ized? 

2. Location of plants. 

3. Restrictions, legal or other, on the loca¬ 
tion of the plants. 

4. Reasons influencing location of the plants. 

5. Type of plants common to the industry. 

6. Influence of the sequence of operations 
on the type of buildings. 

7. When were the company’s plants erected ? 

8. Size of plants. 

9. Capacity of plants. 

10. Cost of the plants. 

11. Is the company building or considering 
the erection of any new plants? 

12. Details of equipment of plants, 

a. Policy as to maintenance of plants. 

13. Power used in the plant. 

14. Manufacturing policies as to: 

a. Volume. 

b. Quality of product. 

c. Inspection and grading. 

d. Finish of product. 

e. New products. 

f. New designs. 

g. Utilization of by-products. 

15. Type of organization. 

a. Divisional. 

b. Functional. 

c. Combination of the two forms. 


16. Scheme of organization for manufac¬ 
turing. 

a. Departmental organization, responsibilities, etc. 

b. Personnel. 

c. Details as to how plant executives are picked, de¬ 
veloped and paid. 

17. Manufacturing records and statistics. 

18. Experience with Scientific Management. 

19. Organization for purchasing. 

a. Departmental organization, personnel, responsi¬ 
bilities. 

b. How are the purchasing records kept? 

c. In what form are such records presented to manu¬ 
facturing executives? 

20. Buying of materials. 

a. By whom. 

b. At what times, intervals, etc. 

c. In what quantities. 

d. How are material needs arrived at. 

21. Standards for raw materials. 

22. Testing of materials. 

23. Price of materials. 

24. Stocks carried. 

25. Inspection policies. 

26. Branding of product. 

27. Packing product for shipment. 

28. Shipping. 

a. How are shipments made as a rule? 

b. For the company’s products. 

29. Classes of labor needed. 

30. Supply of labor that can be depended 
upon. 

31. Labor turnover. 

32. Management of labor in plants. 

a. Organization. 

b. Personnel, superintendent, etc. 

33. Standards and methods of hiring labor. 

a. Organization, personnel, etc. 

b. Standards. 

c. Systems, records and statistics. 

34. Rates of pay. 

35. Instruction of labor. 

36. Welfare work. 

37. Systems of accident insurance in use. 

38. Social organizations among employees. 

39. Means of encouraging a spirit of interest 
and loyalty in the employees. 

40. Is labor in the industry unionized? 

41. Labor disturbances in the industry. 

42. Effects of the war upon labor in this 
industry. 

43. Manufacturing costs. 

a. How do costs vary? 

b. How do costs vary by season? 




Seventh Outline 


44. How are the company’s costs kept? 

45. How much and how soon do variation 
in manufacturing costs influence? 

a. Consumer prices? 

b. Prices to the trade? 

c. Volume of sales? 


III. DATA ON THE PRODUCT 

A. The product’s characteristics. 

1. The company’s product (what it is). 

2. The economic reasons for the product’s 
existence. 

a. New product filling an unsatisfied want. 

b. Worth-while improvement on a product already in 
use. 

c. Shortage in supply of the product. 

3. What service does the product render? 

4. The general characteristics of the pro¬ 
duct. 

5. The history of the product. 

6. The standing of the product. 

7. Uses of the product. 

8. Is the product patented? 

9. Are manufacturers licensed by the own¬ 
ers of the plants? 

10. Dates the patents were issued. 

11. In what other countries has the product 
been patented? 

a. When? 

b. Have the patents been worked? 

12. Infringements on patents. 

13. Type of product name usual in the 
industry. 

14. Name of the company’s product. (If a 
line of products, the Line name, if there 
is one). 

15. The usual type of package. 

16. Type of package used for the company’s 
products. 

17. Is the product trade-marked? 

18. Significance of the trade-mark. 

19. Is the product guaranteed? 

20. How is the consumer made aware of the 
guarantee ? 

21. How is the guarantee made good? 

22. How is the company protected, and 
how does the company protect the 
trade ? 

23. What faults have developed in the 
guarantee ? 


B. The company’s product policies. 

1. The usual range of line. 

a. One product. 

b. Series of products. 

c. Series of unrelated products. 

d. One product intended to open the way for a series. 

2. How many classes of the product are 
made? 

3. Variation in volume by classes. 

4. How many styles in each of these classes 

5. Variations in volume by styles. 

6. How many grades of the product are 
produced ? 

7. Variations in volume by grades. 

8. Effects of the grades upon: 

a. The consumer. 

b. The retailer. 

c. The wholesaler. 

9. Volume classified, showing percent by: 

a. Classes. 

b. Styles. 

c. Grades. 

10. Quality of product. 

11. Improvements in the product. 

12. Stocks of finished product carried. 

C. Manufacturing processes, materials, etc. 

1. Materials used in manufacturing the 
product. 

2. Sources of materials. 

3. Limitations on supply of materials. 

4. Manufacturing processes. 

5. Has the company any special processes? 

6 . List all important tests the finished prod¬ 
uct must undergo to be entirely satis¬ 
factory. 

7. Inspection of the finished product. 

D. Relation to competitive products. 

1. Technical test and study of the product. 

2. List important users of the products. 

E. Adaptation to the user’s wants, needs, 
etc. 

1. Make a practice test on 100 to 1000 
consumers. 

2. List changes in product that might be 
desirable from the user’s view. 

IV. DATA ON THE MARKET 
A. The territory and its characteristics. 

1. Territorial limitations on the market. 


[28] 




Seventh Outline 


2. The reason for such territorial or geo¬ 
graphic limitations. 

3. The market’s limitations by size of 
communities. 

4. Reason for such community limitations. 

5. Area in square miles. 

6. Topography. 

7. Climatic features. 

8. Soils, noting crops the soils are best 
fitted for. 

9. Forests. 

10. Arable lands. 

11. Irrigation projects. 

12. Number of people in the territory. 

13. Density per square mile. 

14. Distribution of people. 

15. Racial distribution. 

16. Wealth of the territory. 

17. Income of the territory. 

18. Occupations in the territory. 

19. Literacy. 

20. Health of the territory. 

21. Political complexion of the territory. 

22. The religions. 

23. Agriculture. 

24. Timber. 

25. Mining. 

26. Fisheries. 

27. Important lines of manufacturing. 

28. Important lines of commerce. 

29. Commercial habits, practices, etc. 

30. Numbers of retailers in important lines. 

31. Numbers of wholesalers, jobbers, etc., 
in important lines. 

32. Financial aspects of the market. 

33. Banking facilities. 

34. Significant figures as to: 

a. Bank clearings. 

b. Real estate operations. 

c. Building operations. 

d. Failures. 

e. Fire losses. 

35. Labor conditions in the territory. 

36. Railroads. 

37. Express. 

38. Waterways. 

39. Inter-urban electric railways. 

40. Highways. 

41. Newspapers. 

42. Magazine circulation in the territory. 

43. Mail. 


44. Telephone. 

45. Telegraph. 

B. The market’s consumption of the prod¬ 
uct. 

1. Yearly consumption. 

2. Per cent unbranded? In bulk, etc. 

3. Per cent branded. 

4. Increase or decrease in the consumption 
of the product. 

5. Reasons for such changes. 

6. Per capita (or per family) consumption. 

a. Yearly. 

b. Monthly. 

c. Daily. 

7. Numbers of people or families now using 
the product. 

8. Numbers of people or families who can 
use the product. 

9. Reasons for the existing limitations on 

the company’s market. 

10. By what classes of people is the product 
used ? 

11. Any special classes of users. 

12. Consumption of such special classes (per 
capita and total). 

13. Other classes that are possible users. 

14. Increasing the individual’s consumption. 

15. New uses to increase consumption. 

16. Extent to which normal consumption 
might be increased. 

17. Total volume that might thus be forced. 

18. To what extent is consumption based 
upon utility. 

19. On quality. 

20. On the product’s service. 

21. Influence on consumption of the variety 
of uses. 

22. Influence on consumption of the ease of 
procuring the product. 

23. Of the product’s appearance. 

24. Of the product’s simplicity in use. 

25. Influence of seasons on the quantities 
consumed. 

26. Influence of style, etc., on the quanti¬ 
ties consumed. 

27. Influence of weather, climate, etc., on 
the quantities consumed. 

28. Within what income ranges does con¬ 
sumption mostly lie? 

29. Influence of income on consumption. 


[29] 




Seventh Outline 


30. Average per cent of income spent on this 
product. 

31. Influence on consumption of wealth. 

32. When personal sacrifices must be made, 
is this one of the earlier products to go? 

33. Influence on consumption of the con¬ 
sumer’s personal knowledge of the prod¬ 
uct. 

34. The consumer’s attitude toward the 
product. 

35. Racial influence on consumption. 

36. Influence on consumption of the con¬ 

sumer’s buying habits. 

37. Influence on consumption of the prod¬ 
uct’s relative cost. 

38. Changes in use that have modified the 
rate of consumption. 

39. Economic changes influencing consump¬ 
tion. 

40. Influence on consumption of govern¬ 
mental rulings or restrictions. 

41. Geographic distribution of consumption. 

42. Geographic distribution of the potential 
consumption. 

43. Consumption per square mile. 

44. Influence on consumption of sizes of 
communities. 

45- Relation of the potential consumption 
to size of communities. 

C. Distribution of the product. 

1. Distributed directly or indirectly to the 
user. 

2. Extent and tendency of direct distribu¬ 
tion. 

3. Extent and tendency of indirect distri¬ 
bution. 

4. To what classes of users, if distributed 
directly? 

5. Thru what agencies of distribution? 

6. Volume thru such direct agencies. 

7. If the product is distributed indirectly, 
the important outlets for the product/ 

8. The logical retailers of the product. 

9. The special retailers. 

10. Other possible retailers of the product. 

11. The larger consumers of the product. 

12. The manufacturers who use the product. 

13. The converters of the product. 

14. Does sale to or by any of the outlets 
antagonize any of the others? 


15. The usual routes to the outlets for the 
product. 

16. If through branches. 

17. If through manufacturers’ agents. 

18. If through commission men, brokers, etc. 

19. If through jobbers. 

20. If through retailers direct. 

21. Is the distribution national? 

22. Which closely adjacent regions are 
strongest in distribution? 

23. Distribution of volume by states. 

24. Influence on distribution of size of com¬ 
munities. 

V. DATA ON THE COMPANY’S 
SELLING 

A. The company’s sales policies. 

1. Responsibility for the sales policies. 

2. Opinion as to permanency of sales poli¬ 
cies. 

3. Attitude toward new policies, or changes 
in established policies. 

4. The company’s expectations of its sell¬ 
ing effort. 

5. The company’s sales policies as to the 
products. 

6. The company’s sales policies as to dis¬ 
tribution. 

7. The company’s sales policies as to the 
consumer. 

8. The company’s sales policies as to the 
retailer. 

9. The company’s sales policies as to the 
jobber. 

10. The company’s policies as to competition. 

B. The company’s sales organization. 

1. Scheme of organization for selling. 

2. Sales records and statistics. 

3. Extra-departmental relations. 

4. Company’s branches. 

5. Use of and reasons for operating branches. 

6. Organization of branches. 

7. Branch sales. 

8. Branch selling costs. 

9. Branch stocks. 

10. List of branch managers. 

11. Responsibilities of branch managers. 

12. Scheme of organization of company’s 
sales force. 


[30] 




Seventh Outline 


13. Management of sales. 

14. Territorial managers. 

15. Product managers. 

16. Outlet managers 

17. Company’s salesmen. 

a. Number of salesmen on the company’s rolls. 

b. Type of salesmen. 

c. Hiring of salesmen. 

d. Classes of salesmen. 

18. Training of the salesmen. 

19. Improvement of the salesmen. 

20. Stimulation of the company’s salesmen. 

21. Correspondence with salesmen. 

22. Salesmen’s territories. 

23. Salesmen’s quotas. 

24. Salesmen’s equipment. 

25. Salesmen’s responsibilities. 

26. Special uses of salesmen. 

27. Salesmen’s reports. 

28. Salesmen’s compensation. 

29. Salesmen’s expenses. 

C. The company’s sales promotion. 

1. Organization for sales promotion. 

2. Cooperation with the company’s sales¬ 
men. 

D. In relation to the distributing factors. 

1. Does the company use manufacturers’ 
agents ? 

2. Does the company use brokers? 

3. Details of the company’s brokers or¬ 
ganization. 

4. Does the company distribute through 
jobbers ? 

E. The retailers. 

1. Classes of retailers who sell the product. 

2. The retailers’ attitude towards the 
company’s products. 

3. General characteristics of the retailer. 

4. Personal characteristics of the retailer. 

5. Retailer’s policies. 

6. Retailer’s financial policies. 

7. The retailer’s store. 

8. The retailer’s buying. 

9. The retailer’s employees. 

10. The retailer’s advertising. 

12. The retailer’s attitude on advertising. 

13. Sales helps the retailers like. 

F. Indirect sales factors. 

1. What indirect sales forces may be util¬ 
ized ? 


G. The company’s specific sales methods. 

1. In extending the present market. 

2. In opening new markets. 

3. Use of contests. 

4. Demonstrations. 

5. Sampling. 

6. Special inducements. 

H. The company’s sales figures. 

1. Volume of sales. 

2. Sales costs. 

VI. DATA ON COMPANY’S 
ADVERTISING 

A. The company’s advertising policies. 

1. Responsibility for advertising policies. 

2. Permanency of advertising policies. 

3. Attitude towards new policies or changes 
in established policies. 

4. The officials’ attitude toward advertising. 

5. History of the company’s advertising. 

6. Purposes of the company’s advertising. 

7. Products to be featured in the advertise 
ing. 

8. Style of advertising used. 

9. Territorial scope of the past advertising, 

a. National. b. Localized. 

10. Advertising policies relating to the con¬ 
sumer. 

11. Advertising policies relating to the trade. 

12. Policies relating to competitive adver¬ 
tising. 

B. The company’s advertising organization. 

1. Details of the advertising organization. 

2. Extra departmental relations. 

C. The company’s advertising methods. 

1. The company’s advertising methods 
relating to consumers. 

2. Direct advertising to the consumer. 

3. Advertising methods relating to the 
trade. 

4. Direct advertising to the trade. 

5. The company’s house organs. 

6. Methods of advertising cooperation 
with the trade. 

D. The company’s advertising expenditures. 

1. Advertising expenditures, 

a. Consumer. b. Trade. 

2. Does the company make up a budget 
for advertising? 


[ 31 ] 




Eighth Outline 


EIGHTH OUTLINE 


I. PRODUCT 

A. The industry 

1. Production. 

a. By years. 

b. By states. 

2. Producers. 

a. Quantity. 

b. Age. 

c. Financial strength. 

d. Volume of business. 

3. Supply. 

a. Raw material. 

b. Labor. 

4. Good will. 

a. Legal restrictions. 

b. Economic tendencies. 

c. Cooperative associations. 

d. Public attitude. 

B. The client. 

1. Organization. 

a. Personnel. 

b. Responsibilities. 

c. Control. 

2. Accomplishments (by years). 

a. Volume of business. 

b. Costs. 

c. Profit or loss. 

3. Policies. 

a. Standardization. 

b. Guarantees. 

c. Price maintenance. 

d. Credits. 

e. Aims. 

4. Good will. 

a. Patents. 

b. Trade-marks. 

c. Copyrights. 

d. Public attitude. 

5. Capacity for growth. 

a. Money. 

b. Men. 

c. Material. 

C. The product or service. 

1. Uses. 

a. Reasons for purchase. 

b. New uses. 


2 . Kinds and sizes. 

a. Proportion of volume. 

b. Proportion of profit. 

3. Merit. 

a. Quality evidence. 

b. Quantity evidence. 

c. Prices and profits. 

d. Records of other advantages or disadvantages. 

4. Identification. 

a. Name. 

b. Article and container. 


II. MARKET 

A. Consumpton. 

1. By years. 

2. By states. 

3. Per capita. 

4. Of average consumer. 

5. Repeat. 

B. Consumers. 

1. Quantity. 

a. Total possible. 

b. Present. 

2. Location. 

a. Size of community. 

b. Climatic conditions. 

c. Transportation. 

3. Classes. 

a. Social. 

b. Industrial. 

4. Characteristics. 

a. Literacy. 

b. Nativity and color. 

c. Religion and politics. 

C. Seasons. 

1. By territories. 

D. Economic conditions. 

1. Wealth. 

2. Income. 

3. Business conditions. 

E. Resistance. 

1. Brand specification. 

2. Nature and amount of competition. 


[ 32 ] 




Eighth Outline 


III. DISTRIBUTION AND SALES 

A. Methods. 

1. Available. 

2. How used. 

3. Records of each. 

a. Proportion of volume. 

b. Time required. 

c. Cost. 

B. Distributors. 

1. Quantity. 

a. Total possible. 

b. Present. 

2. Location. 

a. Size of community. 

3. Classes. 

a. Other merchandise carried. 

b. Ratings. 

c. Volume. 

d. Equipment and ability. 

4. Characteristics. 

a. Profit demanded. 

b. Size of order. 

c. Stocks carried. 

d. Price maintenance. 

e. Credits asked and extended. 

f. Advertising. 

5. Seasons. 

a. Frequency of order. 

C. Salesmen. 

1. Quantity. 

2. Territory. 

3. Quality. 

a. Selection. 

b. Training. 

c. Experience. 

d. Duties and quotas. 

e. Supervision. 

4. Seasons. 

a. Frequency of calls. 

5. Compensation and costs. 

IV. MEDIA AND MEANS 

A. Kinds used. 

1. Consumer. 


2. Dealers. 

3. Wholesalers. 

4. Influencing groups. 

5. Salesmen. 

B. Prestige. 

1. Editorial policy. 

2. Circulation policy. 

3. Advertising policy. 

C. Performance. 

1. Use by competitors. 

2. Record of sales. 

D. Circulations. 

1. Quantity. 

2. Quality. 

3. Location. 

E. Cost. 

V. ADVERTISEMENTS 

A. Size. 

B. Frequency. 

C. Identification. 

1. Number of features. 

2. Relative strength. 

D. Appeal (Psychological). 

E. Claims. 

F. Follow-up. 

1. Home office literature. 

a. Number. 

b. Time. 

c. Contents. 

d. Quality. 

2. Distributors’ literature. 

a. Number. 

b. Time. 

3. Salesmen, 
a. Time. 


[ 33 ] 




Research 


» 


D. Comparison of Methods. 

In studying these eight outlines we are first 
struck by their remarkable similarity. While 
some of them asked the same question in a 
number of different ways, in general the same 
frame work runs through all. 

We are next struck by the need for a stan¬ 
dard terminology. For instance, one outline 
uses the word “Market” where another uses 
the word “Field” and still another has two 
divisions for the subject market—“Consump¬ 
tion” and “Consumers.” 

While outlines One, Two and Five present 
a separate subdivision for “Competition,” the 
other five outlines seem to be built upon the 
principle of weighing the advantages and dis¬ 
advantages of all subjects in relation to com¬ 
petition , thus considering competition as a 
constantly present force to be reckoned with 
from beginning to end. In other words, 
there are competing products, there are com¬ 
petitors in the market, there are competitive 
methods of distributing and selling and there 
is competitive advertising, so that “Competi¬ 
tion” must either be a subdivision under each 
main head or the subdivision “Competition” 
must review each main head. 

In most cases each question permits many 
other subdivisions and these could probably 
be carried out to infinity. The most impor¬ 
tant thing may be found as a subdivision of 
one of the very simplest questions. The most 
striking conclusion is the similarity which 
these outlines bear to the definition of Agency 
Service adopted by the Executive Committee 
of the American Association of Advertising 
Agencies in 1918. 

“Agency Service consists of interpreting 
to the public, or to that part of it which it 
is desired to reach, the advantages of a 
product or service.” 


The work of the agent is then clearly di¬ 
vided into two parts, the “study, analysis and 
knowledge” on which the service is based and 
the “recommendations and procedure.” 

The study is divided into four main parts: 

1. Product. 

A study of the product or service in 
order to determine the advantages and 
disadvantages inherent in the product 
itself, and in its relation to competition. 

2. Market. 

An analysis of the present and potential 
market for which the product or service 
is adapted: 

As to location. 

As to the extent of possible sale. 

As to season. 

As to trade and economic conditions. 
As to nature and amount of compe¬ 
tition. 

3. Distribution and Sales. 

A knowledge of the factors of distribu¬ 
tion and sales and their methods of 
operation. 

4. Media and Means. 

A knowledge of all the available media 
and means which can profitably be used 
to carry the interpretation of the 
product or service to consumer, whole¬ 
saler, dealer, contractor, or other factor. 

While we understand that no one of these 
outlines, except the last, was written with 
this definition as a model, the general plan of 
each outline seems to follow the definition 
very closely. 


[34] 




Research 


III. HOW THE INFORMATION IS USED 


We have not, in any way, attempted to 
investigate the methods of arriving at con¬ 
clusions to be drawn from such information. 
This is the property of the individual agent 
and will depend entirely upon his skill, knowl¬ 
edge and ability. It is one thing to gather 
information and it is an entirely different 
thing to prepare a plan built on this informa¬ 
tion. The first step, however, is to obtain 
the information. 

We wish particularly to caution members 
not to attempt to use such an outline as an 
outline of an advertising plan. The plan is 
a different thing. It must take into con¬ 
sideration the answers to questions on many 
unrelated subjects. Some members have 
standard outlines for plans, but the plan is 
another subject entirely. 

The information is used, of course, for two 
different purposes: 

1. To prepare an intelligent plan. 

2. To determine the advisability of the 
agency handling the account. 

A . Rejecting the Account. 

While the information obtained is often of 
great value to the client and to the agency 
in the development of the advertising plan, 
it has another significance to the agency 
which should not be overlooked by execu¬ 
tives and we find some of our members mak¬ 
ing it a point to review all of the material 
furnished by the Research Department with 
the one idea of deciding if, for any reason, 
it may be advisable not to handle the ac¬ 
count. This matter of what accounts it is 
advisable to handle and what sacrifices may 
be made for the sake of permanency of agency 
connections, is one which we can only touch 
on here. For the most part it is easy to tell 
when it is inadvisable to handle an account. 


The shortcomings are very apparent to the 
experienced advertising agent and the more 
experience he has had in the business the 
quicker will he be to refuse to solicit an ac¬ 
count or to turn an account out even after 
work may have been started. Some of our 
members have some very definite rules to 
help their representatives in this respect. 
They furnish their representatives with lists 
of classes of accounts which they do not care 
to handle, together with some form of analy¬ 
sis as to what constitutes a profitable account. 

When we asked members as to what 
seemed to be the three most vital factors in 
determining their acceptance of an account, 
the great majority said the credit, the char¬ 
acter of the men and the quality of the prod¬ 
uct. The financial committee of this Asso¬ 
ciation has published bulletins on the matter 
of credit. We would not attempt to say how 
our different members size up the character 
of the men they care to serve. When one 
member was asked this question he looked 
up in surprise and with a great deal of sin¬ 
cerity replied, “After each of the executives 
of this agency has talked with the men we 
are to deal with, we sit down and ask our¬ 
selves whether or not they seem to talk our 
language. If they do not, we know the time 
will come when we will not get along to¬ 
gether and the sooner we recognize that con¬ 
dition the better it will be for all of us.” 

One agency has a rather unique way of 
determining the advisability of accepting an 
account after the report is received from the 
Research Department. This agency ex¬ 
plains its method as follows: 

“Three officers of the company, the Presi¬ 
dent, the Sales Manager who is also the Vice- 
President and the Service Manager to whom 


[35] 




Research 


the account would be assigned if accepted, 
review the report of the Research Depart¬ 
ment and then each one makes an estimate 
of the chances for success as he sees it. We 
do not consider that any concern could make 
a 100% success but we have rather arbitrarily 
selected four elements which we find about 
equally balanced in making for success and 
we feel that if, in our judgment, any one of 
these is equal to zero, we should not take the 
account. We give each one of these ele¬ 
ments 25% of the total. While we have many 
subdivisions to assis't us in determining the 
weight of each of these four, the main divi¬ 
sions are men , money, merchandise and 
market. We have talked about these four 
elements so much that we now understand 
each other thoroughly as to our definitions 
and it is interesting to see how near our esti¬ 
mates tally. We then get the average of the 
totals of the three of us and just because we 
are trying to get better accounts all the time, 
we have made a rule that if the average of 
the three estimates does not equal our esti¬ 
mates of the ratings of the average of our 
present accounts, we will not take the account 
because we cannot put our hearts into the 
work. We have now used this plan for sev¬ 
eral months and while there are many cases 
in which it is not necessary to be so sys¬ 
tematic, we find that it helps us to under¬ 
stand each other and to understand the na¬ 
ture of the accounts we are attempting to 
serve.” 

The above example is an extreme case but 
it shows that our members are giving a great 
deal of thought to the matter of accepting an 
account and there are some who say that 
their Research Departments have paid for 
themselves in the information they furnish 
on this one subject alone. 


B. Presenting the Findings. 

Some members present the findings of an 
investigation to the client before they proceed 
to recommend any merchandising or adver¬ 
tising plan. After the result of the investiga¬ 
tion is reported one written report is delivered 
to the client, another remains in the files of 
the Research Department and the third is 
furnished to the account executive for the 
preparation of the plan. 

Other agencies present the result of the in¬ 
vestigation and the plan at the same time. 
The result of the investigation is usually tab¬ 
ulated and charted in so far as possible. The 
reports we have seen have either been in 
bound book form or prepared in loose leaf 
binders. The more thorough agencies usually 
accompany the report with all of the investi¬ 
gator’s original report sheets that the client 
may make other tabulations and conclusions 
if he so desires. For easy presentation large 
maps and charts are usually made, these being 
about two by three feet in size. Some mem¬ 
bers reduce these large maps for the written 
report by simply having them photographed. 
Others have standard forms of smaller maps 
on the same kind of paper as the report itself. 
This makes the report much easier to read as 
the photographs are stiff and often detract 
from the appearance of the bound volume. 
Where a great many copies of the report are 
made, of course the maps are printed. It is 
very seldom, however, that the report is 
printed in regular type as there seems to be a 
preference for the appearance of typewriting 
so that when many copies are desired the 
body sheets of the report are usually multi- 
graphed. 

Before the report is submitted it is usually 
reviewed in the agency by the men who are to 
present it. If the report and the plan are sub¬ 
mitted at the same time there is usually too 


[36] 




Research 


much for one man to present. He becomes 
tired and the effect is lost in the presentation. 
In such a case the Research Department will 
present the report of the investigation perhaps 
calling on a field representative from time to 
time to submit his remarks. Then the ac¬ 
count executive will discuss the report in 
relation to the plan and in turn call upon the 
art director and the director of copy to ex¬ 
plain the details which come into their depart¬ 
ments. 

While there are still many advertising plans 
presented wherein nothing is put on paper but 
the schedule, layouts and the copy, there are 
so many people who must come in contact 
with the plan that most of our members pre¬ 
fer to have a written plan to go by even if it 
is not read at the time of the presentation. 

We asked many members as to their prac¬ 
tices in relation to this point and we found 
that the procedure varies in different agen¬ 
cies, with the clients and with the tempera¬ 
ment of the men presenting the plan. One 
agent says: 

“I find the best way to present an adver¬ 
tising plan is to dictate it word for word 
exactly the way I intend to present it, read it 
over, put it in my desk, go before the direc¬ 
tors and talk it without any notes except the 
exhibits which I have to show.” 

Another agent says, “I make an outline of 
the subjects which I intend to talk about, 
make a speech to myself according to this 
outline to see that I do not miss anything and 
then at the conference with the client I have 
little trouble in following the outline. When 
the client objects to any point, offers sugges¬ 
tions or makes changes I note them in the 
outline as I proceed and then when I have re¬ 
turned to the office I dictate what we have 
agreed upon and send it to the client so that 
we have something on paper.” 


Another agent says, “I have tried again and 
again to present a plan without reading. I 
always write it first so that I will leave noth¬ 
ing out. Each time that I try to hurry, how¬ 
ever, I find that I miss some of the most 
important features, so I have decided that 
the best way is to write the plan and to read 
it slowly word for word. I have often found 
that the presentation of the plan will 
take too long and therefore usually ar¬ 
range to take an entire day with the client 
when the plan or the result of an investigation 
is presented. I do not believe that any group 
of men should be kept cooped up for more 
than three hours at a stretch and I prefer to 
have a morning session commencing at ten 
o’clock at which we present the results of the 
investigation. This we try to get into two to 
three hours. Then we have luncheon and 
present the plan built on the investigation in 
the afternoon. I have tried breaking it into 
two parts commencing one afternoon and 
finishing the next morning but I usually find 
that it is hard to get the group together 
again.” 

Another member says, “We have given a 
great deal of study to the matter of group 
selling. There are many advantages in it 
and at the same time it offers many dangers. 
Unless one man leads the presentation all the 
way the thought is in danger of becoming 
side-tracked in interminable conversation. 
There is something about reading a plan 
which commands attention. We find it ad¬ 
visable to assign different parts of the work 
to the different men in the conference. One 
man is given the post of reading the report; 
another is assigned to presenting the exhibits, 
still another is to watch the individuals in 
the conference and if anyone is not giving 
attention or seems not to understand what 
is being read, he is expected to break in on 


[37] 




Research 


the reading and explain the matter more in 
detail. It is hard for the one reading to watch 
each one of the men he is selling. Another 
one, usually the President or the Sales Man¬ 
ager, is assigned the task of closing, either 
driving home the conclusions when that 
point is reached or discussing the matter of 
expense and getting the client on the dotted 
line. We do everything we can to avoid any 
seeming “dramatization” and we certainly 
abhor claptrap, nevertheless we feel that 
when we call a group of men in to consider 
a report on the fundamentals of their busi¬ 
ness, a matter involving several hundreds of 
thousands of dollars and the policy on which 


the success or failure of their business may 
depend, we are justified in spending a great 
deal of time and attention to seeing that 
what has taken us months of study and re¬ 
search to prepare is presented in a way 
which everyone will understand and appre¬ 
ciate.” 

We find that most agencies prefer to hold 
these conferences with the clients in the of¬ 
fices of the agency and that they are doing 
everything within their power to get the 
clients in the habit of coming to the agency 
at least once each year when the results of 
investigations are presented or plans are 
outlined. 


1381 




Research 


IV. METHODS OF CHARGING FOR RESEARCH WORK 


One of the greatest problems is how to 
charge for research work. Most agencies do 
not charge an additional fee for such work on 
the ground that the research is for the pur¬ 
pose of obtaining information on which the 
agency plans the advertising and that the 
investigation is simply an additional insur¬ 
ance as to the profitableness of the campaign. 
Some agencies charge a set fee for the plan, 
this fee including the cost of the research 
work. One agency charges the prospective 
client with the actual cost of the investiga¬ 
tion provided the result of the investigation 
shows that an advertising campaign would 
not be advisable, but makes no charge if the 
advertiser proceeds with a campaign, the 
only charge then being the customary card 
rates on the space and 15% on the material 
used. 

Another agency has four methods of charg¬ 
ing. This agency makes all agreements with 
clients on the basis of a guarantee of income. 
With this guaranteed income as a part of all 
agreements with new and old advertisers, it 
finds it is in a position to carry on investiga¬ 
tions on the following basis for charges: 

/. Initial Surveys (New clients ). 

The client is charged with all traveling 
expense and cash outlays for material 
and postage on mail investigations and 
all special printing, material, binders 
and all other incidental costs but is not 
charged for the time of the investi¬ 
gator’s, the executive’s or the clerical 
work or any other overhead, the agency 
holding that this information is as valu¬ 
able to the agency as to the advertiser. 

2 . Where the investigation is made primarily 


to obtain information for the use of the 
agency (Old Clients ). 

In this case the charges are the same 
as for new clients. 

J. Where the agency is equally interested 
with the client in the result (Old Clients). 

In such cases the client is charged for 
the investigator’s time as well as all 
traveling expense, together with cler¬ 
ical and stenographic work. Such ex¬ 
penses are figured at cost and there is 
no charge for the time of executives or 
overhead. The client is charged at cost 
for all cash outlays for material and 
postage on all mail surveys and all 
special printing, material, binders and 
other incidental costs. 

4. Where the investigation is made primarily 
for the clients’ interests (Old Clients ). 

In such a case the agency quotes in ad¬ 
vance a price for the complete survey 
and report. It figures all reporters’ 
time on a per diem basis, all traveling 
expense at cost, all clerical and steno¬ 
graphic expense, material and postage 
and all executive’s expense at cost and 
adds thereto a fee of 15%. 

In commenting upon this, the member 
says, “For surveys of this last class, it is 
our expectation that the price mentioned will 
fully cover our entire cost of handling—pro¬ 
vided we are good estimators. We are not 
particularly interested in obtaining a profit. 
However, in order to play safe in naming a 
price, it is quite probable that in a majority 
of cases this class of work does return us a 
nominal profit.” 


[39] 




Research 


As an agency obtains a reputation for 
thorough, constructive research work, it 
finds its clients more anxious to have this 
service and more willing to pay for it. Some 
agencies refuse to take an account until a 
certain amount of research work is under¬ 
taken. Most of our members at the present 
time, however, find the research which they 


have undertaken varying to a great extent 
with their different accounts. Some require 
very little and others require a great deal. We 
have found no member who has established a 
Research Department with the theory that it 
would pay for itself on the fees added for re¬ 
search. 


[40] 




Research 


V. BOOKS AND ARTICLES IN RELATION TO RESEARCH 


We found very little in common in the 
equipment of the different Research Depart¬ 
ments. Some have their Research Depart¬ 
ments very well organized with a man in 
charge of the field investigators, another in 
charge of tabulating and still another in 
charge of preparing reports. Some agencies 
have worked out standard practices for their 
investigators, obtaining these men for the 
most part from colleges and finding that a 
man can be confined to field work for not 
more than two years, if as long as that, before 
he will wish advancement to other parts of 
the Research Department or of the agency. 

It is probably needless to say that the in¬ 
vestigator must be absolutely colorless in 
opinions but must be a good salesman in his 
ability to obtain accurate and reliable infor¬ 
mation. Business men are beginning to dis¬ 
tinguish between questions of opinion and 
questions of fact. The typical questionnaire 
of a few years ago was full of conversation and 
unrelated subjects. The improved question¬ 
naire of today is very carefully planned and 
it is usually found advisable to correct the 
questionnaire after making a few test calls. 
It contains a very few questions nearly all of 
which can be answered by “yes” or “no,” or 
figures. 

Some agencies are beginning to gather to¬ 
gether skeletons of standard questionnaires in 
different lines of industry and one agency has 
obtained some very valuable merchandising 
records through recounts on the same ques¬ 
tions over the same territory a year or two 
later. 

While very few Research Departments 
have built up extensive libraries, their begin¬ 
ning is in evidence everywhere. There are 
certain books which every Research Depart¬ 


ment should possess. Aside from the library 
itself, dealing with the information which the 
Research Department uses, the following 
books relating to research and statistical 
methods should be read by everyone consid¬ 
ering this branch of agency service seriously. 
In addition, our members will be interested in 
the publications of the American Statistical 
Association of New York City. This Asso¬ 
ciation publishes Quarterlies containing some 
very interesting reviews. An example is the 
Quarterly for March, 1920, containing an 
article by Horace Secrist entitled, “Statistical 
Standards in Business Research.” 

A. Books In Relation to Research and Com¬ 
piling of Statistics. 

Commercial Research, by C. S. Dun¬ 
can. 

The Elements of Statistical Method, 
by Willford I. King. 

Business Statistics, by Melvin T. Cope¬ 
land. 

Graphic Charts for the Business 
Man, by Stephen Gilman (64 page pam¬ 
phlet, La Salle Extension University). 

Graphic Methods for Presenting 
Facts, by Willard C. Brinton. 

Statistical Methods, by C. B. Daven¬ 
port. 

An Introduction to Statistical 
Methods, by Horace Secrist. 

Statistical Averages, by Dr. Franz 
Zizek. 

B. Articles in Printers' Ink in Relation to 
Research Work. 

Other references may be found in the trade 
publications. The library of the Printers’ 


[41] 




Research 


Ink Publishing Company has furnished us the 
following list of articles which have appeared 
from time to time in relation to research work 
and statistical bureaus: 


National Advertising to 


Find Unknown Users p. 

Franklin Auto Co. or¬ 
ganizes Research Dept. p. 

Research the Guiding 
Force of Business p. 

Opportunities in Fields 
Hitherto Unadvertised p. 


Fish Firm Finds Big New 
Seller in Housewives’ Old 
Dish 

Unplumbed Markets Await 


Development p. 

Better Market Study the 
Way to Better Advtg. p. 

The Advertising Agency’s 
Part in Developing For¬ 
eign Trade p. 

Squeezing Advertising 
Opportunities Dry p. 

Should the Agency Take 
Over All the Details of the 
Advertising Campaign? p. 


What Happens when the 
Agency Cares for All the 
Advertising? A Vivid De¬ 
scription of the “Before and 
After” Conditions that Pre¬ 
vailed with one Large Ad¬ 
vertiser p. 

How One Advertiser Used 
His Agency as “Teacher” 
and thereby Increased his 
Year’s Sales in Unexpected 
Fashion p. 

“Investigating in the Ad¬ 
vertising Agency” (Agent 
not expected to “run the 


138 Dec. 9, 1920 
no Dec. 2, 1920 
90 Nov. 25, 1920 
134 Oct. 21, 1920 

17 Sept. 9, 1920 
186 June 17, 1920 
3 June 10, 1920 

97 May 13, 1920 
194 April 8, 1920 

55 Mar. 14, 1918 


45 Sept. 14, 1916 


93 July 27, 1916 


business right off the reel” 

—service and merchandiz¬ 
ing assistance chief asset) p. 107 July 20, 1916 

What Data do Advertising 
Agents Require? Outline 
of the Procedure of Some 
Companies in Advance of 
Accepting an Account p. 26 July 13, 1916 

Team-work between Agen¬ 
cy and Advertiser. G. W. 

Hopkins of the American 
Chicle Co. speaks frankly 
to the New York Advertis¬ 
ing Agents on Subjects of 
Mutual Interest. Sugges¬ 
tions on Soliciting Accounts p. 103 May 4, 1916 


Educating an Advertising 
Agency in the Peculiar 

“Twists” of an Account p. 37 Feb. 17, 1916 

Information Advertisers 

Want p. 80 Aug. 5, 1915 

Short Cuts in Getting In¬ 
formation p. 96 April 4, 1915 


How the Advertiser Should 
Deal with the Advertising 

Agent p. 18 Mar. 4, 1915 

How to Deal with the Ag¬ 
ent p. 86 Mar. 4, 1915 


Dealing with the Success¬ 
ful Manufacturer New to 
Advertising p. 40 Feb. 18, 1915 

What are Right and Wrong 
Ways of Agency Solicita¬ 
tion? p. 105 July 23, 1914 


C. Articles in Printers' Ink in Relation to 
Research and Statistical Bureaus. 

Advertising in New Fields 
when the Initial Market 
Grows Smaller p. 3 April 22, 1920 

What the Sales Promotion 

Manager Has to Do p. 41 Mar. 25, 1920 


[42] 




Research 


Technical Investigations as 

Copy Material p. 105 Oct. 23, 1919 

The Operation of the Suc¬ 
cessful Sales Promotion 

Department p. 159 Sept. 4, 1919 

How Great Industries Plan 

for the next Generation p. 45 July 3, 1919 

Broadening Market for Ba¬ 
sic Material by Suggestion p. 37 Mar. 20, 1919 

War Inventions for Peace 

Use p. 129 Mar. 20, 1919 

Laboratory Produces an 

Advertisable Commodity p. 6 Mar. 20, 1919 

A Strong Foundation for 

Your Market p. 3 Jan. 9, 1919 

Investigating the Market 

Factors to be Considered p. 10 Dec. 12, 1918 

Government Comparative 

Tests Help Advertising p. 87 Dec. 21, 1916 

When a Consumer Contest 
is Profitable and when it 
isn’t p. 3 Aug. 10, 1916 


Getting Responses from 

the Dealer Questionnaire p. 75 Aug. 3, 1916 

Advertisers Tell how they 
Would Use Field Investi¬ 
gators p. 49 April 27, 1916 

Behind the Scenes with the 

Trade-mark Examiner p. 75 Mar. 23, 1916 

Organization of an Adver¬ 
tising Department No.IV p. 72 Mar. 8, 1916 

Advertising a Raw Mate¬ 
rial without the Mention 
of Brand Names p. 97 Nov. 18, 1915 

The Data File Helps Sell 

Goods p. 14 Dec. 17, 1914 

Vital Information Adver¬ 
tisers May Get from the 
Government by Asking for 
it p. 55 Nov. 19, 1914 

Why and how a Manufac¬ 
turer Should Make Trade 

Investigation p. 3 Oct. 22, 1914 


[43] 





















